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NEC's results are out today and it's a tale of two halves. In the early part of its financial year it
enjoyed strong sales of cellular telephones and growth of its PC and semiconductor memory business, this more than offset weak sales from mainframe computers and colour LCDs.

But the second half of the year was hit by a huge fall in the DRAM and LCD prices.

NEC reported a net income of 56.6 billion yen ($499 million) on sales of 5.41 trillion yen ($42.9 billion) for the year to March 31, 2000 up 8.4 per cent on the previous year year.

This means NEC was more than five times as profitable in 2001 as it was in 2000, when it recorded net income of 10.42 billion yen ($86.8 million).

The company is now scaling back investments in order to adjust to market conditions.

NEC plans to spend 285 billion yen next year capital investment, or 19 per cent less than last year. As we previously reported NEC will stop making memory chips in the US and Scotland and scale back overall production.